Southeast Asia is an attractive region for business growth, and the coming together of the ASEAN Economic Community is yet another vector of great opportunities. To help companies forge their ASEAN strategies, this report sums up how and when global and ASEAN companies can succeed through a regional approach.
How to overcome the differences of each country? Is it possible to market to one ASEAN customer? What advantage can an ASEAN strategy yield? What obstacles remain?
Built on the testimonies of more than 170 large companies in ASEAN, the Economist Intelligence Unit has created a report entitled “Re-drawing the ASEAN map – How companies are crafting new strategies in South-east Asia” to provide actionable insights for businesses to apprehend Southeast Asia and reach business success.
Covering broad managerial questions as well as more specific, industry-centric topics, this brilliant report will provide many hints to carve a sound business strategy and capture the potential of the soaring economies of Southeast Asia.
Highlights for business strategy in ASEAN
- ASEAN as a whole is a very attractive region, a global leader in several areas.
- Confidence in ASEAN integration and the ASEAN Economic Community – AEC – is rising.
- More and more companies are managing their business in Southeast Asia with a regional strategy.
- Foreign companies tend to have an “ASEAN strategy” more frequently than companies headquartered in an ASEAN country.
- Though ASEAN consumers are coming from different countries and cultures, their behaviors tend to become more uniform, helping companies to market products and services with a regional approach.
- The biggest barriers to regional integration are institutional, rather than cultural or economic.
- Manufacturing clearly is a sector where companies can gain from an integrated regional strategy, supply chain and multi-country structure.
- Manufacturing perspectives are very high for Indonesia and Myanmar, and good for Vietnam and the Philippines too.
- The upcoming AEC will enhance economies of scale and specialization for manufacturing companies. The larger scale that the AEC will permit to reach could also greatly benefit to the services sector.
- HR and recruiting at the regional level could bring significant upside to businesses, but workforce movement still faces significant obstacles to overcome.